Village of New Madison Special Audit Finds Fiscal Officer Mishandled Tax Dollars Totaling $27,312

Tuesday, September 28, 2021


For Immediate Release:                                                      

September 28, 2021                                                               


Village of New Madison Special Audit Finds Fiscal Officer Mishandled Tax Dollars Totaling $27,312


Columbus – Auditor of State Keith Faber’s Office released the Village of New Madison (Darke County) special audit for the period of January 1, 2010 through November 30, 2015. The audit included a finding for recovery totaling $27,312. The Auditor’s Special Investigations Unit initiated a  special audit in November of 2015 after auditors had difficulty obtaining information from the fiscal officer in the 2013 and 2014 financial audit.


Prior to former Fiscal Officer Wanda Lacey being placed on administrative leave in November 2015 and her contract not renewed in December of that year, accounting records were in disarray, system derived income tax information did not exist, and utility adjustments were unable to be explained. During her time of employment, Ms. Lacey was responsible for all aspects related to the Village finances, including but not limited to: utility revenue, income tax revenue, non-payroll and payroll expenditures, and the administrative debit card, creating a clear lack of segregation of duties.


Based on the special audit procedures, the Auditor of State confirmed the allegation that Ms. Lacey did not properly deposit/collect receipts and illegally spent public monies, all of which aggregated to $27,312 in Village funds subject to findings for recovery over a span of almost six years.


Auditors noted:

  • $15,697 in undeposited and/or uncollected utility receipts;
  • $9,282 in overpaid payroll and benefits;
  • $650 in unallowable debit card purchases; and
  • $1,683 in unsupported reimbursements.


A finding for recovery was issued in the amount of $27,312 against Wanda Lacey. In addition, auditors named 13 former and current Council members and Mayors as strictly liable, for allowing and approving expenditures.


A full copy of this report is available online.



The Auditor of State’s office, one of five independently elected statewide offices in Ohio is responsible for auditing more than 6,000 state and local government agencies. Under the direction of Auditor Keith Faber, the office also provides financial services to local governments, investigates and prevents fraud in public agencies, and promotes transparency in government.